( 16 points ) At the end of its 2016 fiscal year -end Piazzo Corporation had 300, 000 shares of preferred stock outstanding . The preferred stock has a book value of $60 per share . In addition , Piazzo paid $160, 000 in dividends to preferred share holders in 2016 . Piazzo also has $8 800, 000 of interest bearing debt outstanding and its after - tax cost of debt is 4.4 % The market value of Piazzo Corporation's 900 ,000 common shares outstanding at year end is $37 800 , 000 and the company 's cost of common equity is 9.2% . Piazzo paid a $2. 60 dividend in 2016 . Analysts expect Piazzo to increase its dividend payout by 6% annually over the long term . Piazzo reported net income of $2 800 000 in 2016 . The average PE ratio in Piazzo industry is 15 .2 on a trailing basis . Piazzo had a net profit margin of 9.7 % and an EBITDA margin of 28 .8% in 2016 What is the total book value of Piazzo Corporation's preferred stock at the end of 2016 Estimate the cost of Piazzo Corporation's preferred equity capital